With fewer people working and fewer people paying taxes, of course it takes a toll on federal revenue. What should the response be of our federal government? If they were smart and thinking long term, they would not add to the deficit by increasing spending, even if they promise to pay for it with taxes. That never works. When they raise taxes, people are less inclined to invest domestically and are more likely to move money offshore or keep it offshore. Not helpful to paying for spending. Not helpful to reducing the deficit.
Get this headline, found over on The Hill. Obama administration diverts $500 million to IRS to implement healthcare reform law. Here's the introduction:
The Obama administration is quietly diverting roughly $500 million to the IRS to help implement the president’s healthcare law.
The money is only part of the IRS’s total implementation spending, and it is being provided outside the normal appropriations process. The tax agency is responsible for several key provisions of the new law, including the unpopular individual mandate.Do you really want the IRS in charge of any aspect of your healthcare? Not me. The whole of Obamacare is a mess, if you ask me. And instead of biding their time and waiting for the Supreme Court ruling, Democrats are working to get as much of the law in place as possible, and spending taxpayers' money like water to do it, under the table.
It has moved aggressively to get important policies in place. And, according to a review of budget documents and figures provided by congressional staff, the administration is also burning through implementation funding provided in the healthcare law.
The law contains dozens of targeted appropriations to implement specific provisions. It also gave the Department of Health and Human Services (HHS) a $1 billion implementation fund, to use as it sees fit. Republicans have called it a “slush fund.”
HHS plans to drain the entire fund by September — before the presidential election, and more than a year before most of the healthcare law takes effect. Roughly half of that money will ultimately go to the IRS.There's more than that to scare you over at the article itself. Next we get to the part about new taxes, which I warned you about. These Obamacare taxes aren't even the same taxes that will be raised automatically in 2013 that I told you about a few days ago.
The healthcare law includes a slew of new taxes and fees, some of which are already in effect. The tax agency wants to hire more than 300 new employees next year to cover those tax changes, such as the new fees on drug companies and insurance policies.
The IRS will also administer the most expensive piece of the new law — subsidies to help low-income people pay for insurance, which are structured as tax credits. The agency asked Congress to fund another 537 new employees dedicated to administering the new subsidies.The moral of the story is that we're robbing Peter to pay Paul. Or robbing taxpayers to pay for an increase in taxpayers' health care costs, caused by government. In other words, government took the government-caused health care cost increases and made them even worse by adding more regulations to it. There has got to be a better way, and in fact - there is!
Deregulation would solve a multitude of ills in the private sector and public sector. With less government compliance costs, businesses keep more money to reinvest and grow and hire and even pay more taxes! The same thing happens by cutting taxes. The more money in the private sector, the more money generated by the private sector, meaning an increasing GDP and economy and an end to the recession/stagnation which liberals claim already ended. The more money generated by the private sector, the more the federal government collects in revenue and the less the deficit is expanded. The more money generated by the private sector, the more people get jobs and benefits and the less they need government programs, leading to cutting costs to these programs and shrinking the deficit. More government is not the answer to any of our fiscal problems. Rather, it is the problem with many of our fiscal problems!
PS. There's an awesome letter to the editor/to President Obama in the comment section of the article. It worth the read. It's the fourth comment down, not hard to find. It echoes the same sentiments I shared just now, and given the number of people who liked the comment, the same sentiments shared by many Americans!
PPS. Rush had plenty to say about this subject of Obamacare taxes today, as well as yesterday.
*From Thursday April 11 he said:
Every policy Obama has in place is an obstacle to job creation. The Bush-era tax cuts were followed by 52 consecutive months of job growth. That, by the way, is a record in US history. The Bush tax cuts helped to create more than eight million new jobs. That's close to a record in the period of time. The Bush tax cuts brought the unemployment rate down to 4.5%. The Bush tax cuts worked better than even their biggest advocates dreamed they would work.
PPS. Over at Smart Money there is a great article explaining some of the baffling contradictions within the tax code.
PPPS. The Economic Collapse Blog featured taxes today (Thursday).